Can a court order confiscation of laundered funds in the UAE?

UAE
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Yes. Where a money laundering, terrorist financing or proliferation financing crime is proven, the UAE courts must order confiscation of the criminal property. Confiscation is a mandatory consequence of conviction and is designed to strip offenders of the proceeds and instrumentalities of crime.

Under Federal Decree-Law No. 10 of 2025, the court orders confiscation of the criminal property and, where that property has been mingled with legitimate funds, cannot be seized, or is subject to the rights of bona fide third parties, of other funds owned by the offender equal to its value. Confiscation is enforced whether the property is held by the offender or another party, without prejudice to bona fide third parties. If confiscation proves impossible, the court imposes a fine equal to the value of the property at the time the crime was committed. Even where the perpetrator is unknown or the criminal case has lapsed, the court may still order confiscation of seized criminal property once its link to the crime is established.

Legal Reference (UAE):

For more details, consult the full text of Federal Decree-Law No. 10 of 2025 or seek guidance from your AML compliance officer.

Money laundering fines and penalties in the UAE

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Yes. Where the crime is proven the court must order confiscation of the criminal property, and of any funds owned by the offender equal to its value where the property has been mingled with legitimate funds, cannot be seized, or is subject to the rights of bona fide third parties.

Confiscation is wider than many expect. It is enforced whether the criminal property is held by the offender or another party, subject to bona fide third-party rights. If confiscation is impossible because the property is unavailable or third-party rights intervene, the court imposes a fine equal to its value at the time of the offence. And anonymity of the perpetrator, absence of criminal liability, or lapse of the criminal case do not prevent the court ordering confiscation where the property’s connection to the crime is established.

Legal Reference (UAE):

· Federal Decree-Law No. 10 of 2025, Article 31(1) and (2): mandatory confiscation of criminal property and equivalent-value funds, enforceable against third parties.

· Federal Decree-Law No. 10 of 2025, Article 31(3) and (4): substitute fine where confiscation is impossible, and confiscation despite anonymity or lapse of the case.

For your own circumstances, check your internal AML policy or speak to your compliance officer.

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